https://www.taxtmi.com/caselaws?id=201952 The Income-tax Appellate Tribunal ruled in favor of the assessee, allowing the interest claimed at a higher rate on borrowings for investment in shares of a sister concern. The Tribunal found the investment to be a bona fide business activity, rejecting the Assessing Officer and Commissioner of Income-tax (Appeals)'s views that it was a colorable device to evade tax. The decision emphasized the importance of business expediency in determining the legitimacy of deductions for interest paid for business purposes, leading to a referral to a larger Bench for further examination of such transactions. en-us Mon, 07 Sep 2009 00:00:00 +0530 Sat, 29 Dec 2012 17:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=201952 The Income-tax Appellate Tribunal ruled in favor of the assessee, allowing the interest claimed at a higher rate on borrowings for investment in shares of a sister concern. The Tribunal found the investment to be a bona fide business activity, rejecting the Assessing Officer and Commissioner of Income-tax (Appeals)'s views that it was a colorable device to evade tax. The decision emphasized the importance of business expediency in determining the legitimacy of deductions for interest paid for business purposes, leading to a referral to a larger Bench for further examination of such transactions. Case-Laws Income Tax Mon, 07 Sep 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=201952